Outsourcing

How Much BPO Work Should Buyers Outsource And How Much Should They Send Offshore?

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Executive Summary

The revolution in telecommunication and computing allows corporations to benefit from tapping low cost, high quality labor from around the world. As corporations embark on outsourcing initiatives to leverage these benefits, a question corporations often grapple with is: How much to outsource and offshore? The answers vary by company and have not been static over time. Business process outsourcing (BPO) continues to focus on transactional processing work. Yet this is slowly changing. In the 1990s BPO usually meant cherry-picking a couple of processes like accounts payable and payroll for outsourcing; today more and more buyers are adopting the mind-set that the only must-haves for retained back-office functions are policy and strategy.

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